Melt margarine in skillet. Add coconut stirring constantly over
low heat until toasted. Spread coconut on absorbent paper to cool. Cream 2
tablespoons margarine or butter with cream cheese. Add two teaspoons milk**
and beat in sugar gradually. Blend in vanilla; stir in 3/4 cups of the coconut.
Spread in between cake layers (do not frost sides of layers). Top cake with
frosting and sprinkle remainder of toasted coconut on top.